McDonald’s Senior Clients: Problems and Opportunities Case Study

Exclusively available on Available only on IvyPanda® Made by Human No AI

Break

Even Analysis

When examining the case of McDonald’s “senior” Restaurant there are several aspects to take into consideration, the first is the fact that the sheer amount of regular customers that come to this location can be considered advantageous for the company from a revenue standpoint. First off, it is important to note that while it is true that the amount seniors that occupy the restaurant is considerable, the fact remains that as a fast-food restaurant, most people are not there to stay for prolonged periods with the seniors being an exception to this “rule”. As such, the steady stream of customers that come into the fast-food chain can utilize the limited seating available, finish their meal quickly and leave.

Also, while it is true that most of the seniors do is merely buy a cup of coffee and stay there for a long period, the fact remains that this not apply to all instances wherein there is the very real possibility that some of the seniors would continue to buy food items as they get hungry since they are staying there for 2 to 4 hours. Thus, from a break-even analysis perspective of the number of seniors versus the limitation in seating for new customers, there is no problem whatsoever with the seniors being a very potent means of earning that branch more money.

As for the bingo idea, an underutilized party room for the seniors to play bingo would be a great idea since it is more or less not even used a majority of time yet the company still pays for it due to the rental payments it is subject to for the location it is using. By charging seniors $5 to join the bingo tournament and utilizing prizes in the form of McDonald’s coupons, this encourages people to continue to patronize the products of the restaurant. Not only that, the prizes awarded can be set at a lower level than the amount taken in for the bingo tournament which would result in more money generated than lost.

Financial Ratio Analysis

Sales

Overall, when looking at the sales of the branch, it can be stated that it is doing quite well for itself due to the sheer amount of regular seniors that patronize it. The coffee sales alone would be considerable which, when combined with other items that the seniors buy from time to time, make the current clients a very effective source of daily revenue.

Growth

When it comes to the growth of the location, it is important to note that there is nothing necessarily wrong with being known as the “senior” McDonald’s. The reason behind this is connected to the fact that this branch of the fast-food chain would be able to target a consumer demographic that in the past it had a hard time being able to successfully capture (Berfield 49). By encouraging more old people to visit the branch, this would result in higher sales revenue in the long run due to the steady stream of regular customers as compared to the irregular nature of the clientele that would visit an average McDonald’s branch wherein it is unknown how many people within a given day would come.

Forecasting

In terms of forecasting, the current setup is good for the restaurant since it enables an accurate estimation of the number of customers on any given day. Looking at the number of senior customers that come to the same branch which ranges from 100 to 150, it can be stated that a conservative estimate of the potential increase would be around 5% annually. The reason behind such an estimation is connected to the work of Boje, Driver, and Yue which explained that the inherent issue with senior clientele is that they do not have the same rapid exponential growth as compared to younger customers under their advanced ages (Boje, Driver, and Yue 197).

Works Cited

Berfield, Susan. “Mcfresh. (Cover Story).” Bloomberg Businessweek 4337 (2013): 46-48.

Boje, David, Michaela Driver, and Cai Yue. “Fiction And Humor In Transforming Mcdonald’S Narrative Strategies.” Culture & Organization 11.3 (2005): 195-208.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2021, March 25). McDonald's Senior Clients: Problems and Opportunities. https://ivypanda.com/essays/mcdonalds-senior-clients-problems-and-opportunities/

Work Cited

"McDonald's Senior Clients: Problems and Opportunities." IvyPanda, 25 Mar. 2021, ivypanda.com/essays/mcdonalds-senior-clients-problems-and-opportunities/.

References

IvyPanda. (2021) 'McDonald's Senior Clients: Problems and Opportunities'. 25 March.

References

IvyPanda. 2021. "McDonald's Senior Clients: Problems and Opportunities." March 25, 2021. https://ivypanda.com/essays/mcdonalds-senior-clients-problems-and-opportunities/.

1. IvyPanda. "McDonald's Senior Clients: Problems and Opportunities." March 25, 2021. https://ivypanda.com/essays/mcdonalds-senior-clients-problems-and-opportunities/.


Bibliography


IvyPanda. "McDonald's Senior Clients: Problems and Opportunities." March 25, 2021. https://ivypanda.com/essays/mcdonalds-senior-clients-problems-and-opportunities/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1